12 COTB MC Qu. 10-97 (Algo) Assume that a company uses a... Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours 2 hours Fixed manufacturing overhead During the most recent period, the following additional information was available: The total budgeted fixed overhead was $285,000 The fixed overhead volume variance was $4,200 F How many units were produced during the period? Standard Rate $6.35 per hour Standard Cost $ 12.70
12 COTB MC Qu. 10-97 (Algo) Assume that a company uses a... Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours 2 hours Fixed manufacturing overhead During the most recent period, the following additional information was available: The total budgeted fixed overhead was $285,000 The fixed overhead volume variance was $4,200 F How many units were produced during the period? Standard Rate $6.35 per hour Standard Cost $ 12.70
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:12
COTB MC Qu. 10-97 (Algo) Assume that a company uses a...
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt
from the standard cost card of its only product:
Standard Hours
2 hours
Fixed manufacturing overhead
During the most recent period, the following additional information was available:
The total budgeted fixed overhead was $285,000
The fixed overhead volume variance was $4,200 F
How many units were produced during the period?
Standard Rate
$6.35 per hour
Standard
Cost
$ 12.70
Transcribed Image Text:Multiple Choice
22,372 units
22.772 units
22,110 units
22,972 units
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